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A. a.(1)(a) i) a)DocumentgPleadingHeader for Numbered Pleading PaperE!n    X X` hp x (#%'0*,.8135@8:%7777777777>>>1eOIIOC=OO%+OCbOO=OI=COOhOOC%%47%17171%777U7777%+77O77155;%%%%,%77O1O1O1O1O1bII1C1C1C1C1%%%%O7O7O7O7O7O7O7O7O7O7O1O7O7O7O7O7=7O7O1O1I1I1C1C1C1O7O7O7O7O7,7%7%%%7+O7bO=+N&27%177777"RR7!SS7R!%%117n%%77ln%1n%!N%<<>,?>77?%-77[U%%7>%7777777777>>>1eOIIOC=OO%+OCbOO=OI=COOhOOC%%47%17171%777U7777%+77O77155;N%71n77%n=%b%%11&7n%l+%OO%77777%S7>%S7,OOOOOO=7111111I111117777777<7777777"5^!)22SN!!28!2222222222888,\HCCH=8HH!'H=YHH8HC8=HH^HH=!!/2!,2,2,!222N2222!'22H22,006!!!!(!22H,H,H,H,H,YCC,=,=,=,=,!!!!H2H2H2H2H2H2H2H2H2H2H,H2H2H2H2H282H2H,H,C,C,=,=,=,H2H2H2H2H2(2!2!!!2'H2YH8'N#-2!,22222KK2LL2K!!,,2d!!22bd!,d!N!778(98229!)22SN!!28!2222222222888,\HCCH=8HH!'H=YHH8HC8=HH^HH=!!/2!,2,2,!222N2222!'22H22,006G!2,d22!d8!Y!!,,#2d!b'!HH!22222!L28!L2(7!9-!2KKK,HHHHHHYC====!!!!HHHHHHH8HHHHHH82,,,,,,C,,,,,222222272222222`y.C8*X/C\  P6QPb2I=.X &I\  P6Q&P.d2N=.X&N4  pQ&P,%XJ,\  P6QJPI(!X,(\  P6Q,P{,C8*X3VC*f9 xQX0J=.X3L&J*f9 xQ&X2.1#Z4"5^*7FSS$77Sp*7*.SSSSSSSSSS77pppSffoxffxx7Jo]oxfxfS]xff]]A.AFS7SSJSJ.SS..J.xSSSSAA.SJoJJAC.CZ*7777C7SSfSfSfSfSfSooJfJfJfJfJ7.7.7.7.oSxSxSxSxSxSxSxSxS]JfSxSxSxS]JxSfSfSfSfSoJoJfJfJfJxSxSxSxSxSCS7S777SJxSoSAN:*WSASSSSSS.4}}S2~~S}277]]S77SS7]72N7[[pC`pSS`*7FSS$77Sp*7*.SSSSSSSSSS77pppSffoxffxx7Jo]oxfxfS]xff]]A.AFS7SSJSJ.SS..J.xSSSSAA.SJoJJAC.CZv7S]SS7S777]]:S7A7o]*ASSSS.S7~.Sp7~SC[227`W*724S}}}Sffffffoffff7777xoxxxxxpxxxxx]fSSSSSSSoJJJJJ....SSSSSSS[SSSSSJS"5^.=M\\'==\|.=.3\\\\\\\\\\==|||\ppzpp=Qzfzpp\fppffG3GM\=\\Q\Q3\\33Q3\\\\GG3\QzQQGI2Ic.====I=\\p\p\p\p\p\zzQpQpQpQpQ=3=3=3=3z\\\\\\\\\fQp\\\\fQ\p\p\p\p\zQzQpQpQpQ\\\\\I\=\===\Q\z\GN@.`\G\\\\\\39\7\7==ff\==\\=f=7N=dd|Ii|\\i.=M\\'==\|.=.3\\\\\\\\\\==|||\ppzpp=Qzfzpp\fppffG3GM\=\\Q\Q3\\33Q3\\\\GG3\QzQQGI2Ic=\f\\=\===ff@\=G=zf.G\\\\2\=3\|=\Id77=i`.=79\\ppppppzpppp====z|fp\\\\\\\zQQQQQ3333\\\\\\\d\\\\\Q\ S- X   )d S- #&I\  P6Q &P#Federal Communications Commission`~(#DA972121 ă  yx}dddy )Q3 Before the Federal Communications Commission  S-& Washington, D.C. 20554 ă  S-In Re Application of hh@) x` `  hh@)  Sh-KDD America, Inc. hh@)hFile No. ITC97096 x` `  hh@)  S-Application for Authority underhh@)  S-Section 214 of the Communicationshh@)  S -Act of 1934, as amended, to hh@)  Si -Provide Resale Services to hh@)  S6 -Specified Points hh@)  S -  ORDER, AUTHORIZATION AND CERTIFICATE ă  S7-xAdopted: October 3, 1997hh@hppReleased: October 3, 1997 By the Chief, Telecommunications Division:  Sk- I. INTRODUCTION ă  S- ` x1.` ` In this Order, we grant KDD America, Inc. ("KDD") authority pursuant to Section 214  S- xof the Communications Act of 1934^[q yO:-ԍ x47 U.S.C.  214, as amended (the "Act").^ to provide resold switched services to Belgium, France, Hong Kong, Mongolia and Russia.  S9-  II. BACKGROUND AND PLEADINGS ă  S- `  1. 1. 1. a.(1)(a) i) a) 1 A. 1. a.(1)(a) i) a)x2.` ` KDD is a whollyowned subsidiary of Kokusai Denshin Denwa Co., Ltd. ("KDDJapan").  S- xjKDDJapan is a Japanese corporation that provides international telecommunications services in Japan._X[q yO-ԍ xApplication of KDD at 3 (February 12, 1997)._  xKDD is currently authorized to resell noninterconnected private lines between the United States and the  S:- xUnited Kingdom, Germany, Japan, Belgium, France and Hong Kong :[q {O -  [ԍXxSee KDD America, Inc. File No. ITC 95481, DA 96399, (rel. Mar. 21, 1996); File No. ITC95481, DA 961559, (rel. Sept. 17, 1996); and File No. ITC 97047, DA 971958 (rel. Sept. 11, 1997).(#  and to resell international public  x/switched services to all permissible international points, except Japan, Belgium, France, Hong Kong,  S-Mongolia and Russia.B[q {O$-ԍ xSee KDD America, Inc., File No. ITC97098, DA 971958 (rel. Sept. 11, 1997).  Sn- ` $x3.` ` KDD requests Section 214 authority to provide international resold switched services  xbetween the United States and Belgium, France, Hong Kong, Mongolia and Russia. KDD certifies that  xit is affiliated within the meaning of Section 63.18(h)(1) with foreign carriers in each of the countries in  xwhich it proposes to provide service. KDD is affiliated with KDD Belgium S.A./N.V. ("KDD Belgium")," , * *,,E$"  xKDD France S.A.S. ("KDD France") and KDD Hong Kong Ltd. ("KDD HK") because KDD Belgium,  x<KDD France and KDD HK are whollyowned subsidiaries of KDD Japan. KDD America is affiliated with  xMobiCom Corporation in Mongolia ("MobiCom"), a joint venture in which KDD Japan holds a 44.4%  xinterest. KDD America is affiliated with Vostok Telecom Co., Ltd ("Vostok") in Russia as a result of  S4-KDDJapan's ownership interest in Vostok.O46 yO-ԍ xKDD Application at 24.O  S- ` x4.` ` KDD's application was put on public notice on February 26, 1997. On March 7, 1997,  xthe Office of the U.S. Trade Representative and the Departments of Commerce and State requested a delay  xzof any action on the application while they conducted a review of trade policy concerns raised by the  S5- xapplication.0X5X6 yO- -  ԍXxLetter from Jeffrey M. Lang, Deputy U.S. Trade Representative, Larry Irving, Assistant Secretary of   Commerce and Ambassador Vonya McCann to Reed Hundt, Chairman, Federal Communications Commission (March 7, 1997).(#0 On September 8, 1997, these agencies informed the Commission that they no longer have  S-any objections to Commission consideration of the application.4Xx6 yO-  {ԍXxLetter from Jeffrey M. Lang, Deputy U.S. Trade Representative, Larry Irving, Assistant Secretary of   Commerce and Ambassador Vonya McCann to Reed Hundt, Chairman, Federal Communications Commission (September 8, 1997).(#4 No other comments were received. 6 yO:-  >ԍ XxThe International Bureau did receive a letter from attorneys for PanAmSat in response to the Executive   Branch letter urging the Commission to act on the application "with all appropriate dispatch." Letter from   Henry Goldberg to Peter Cowhey, Chief, International Bureau, Federal Communications Commission (April 3, 1997).(#ư  S -Բ  III. DISCUSSION  1 A. 1. a.(1)(a) i) a) 1 A. 1. a.(1)(a) i) a)  S6 - ` x5.` ` The Commission determined in the Foreign Carrier Entry Order 6 6 {OV-  ԍ XxMarket Entry and Regulation of ForeignAffiliated Entities, Report and Order, 11 FCC Rcd 3873 (1995)  {O -(Foreign Carrier Entry Order). (# that carriers seeking to  xprovide international services to countries in which they have an affiliate with market power must  xdemonstrate that the destination country offers "effective competitive opportunities" ("ECO") for U.S.  xcarriers to offer like services. If an applicant's foreign affiliate does not have market power, we do not  Sk-conduct an ECO analysis._ k6 {O-ԍxForeign Carrier Entry Order at  102._  S- ` x6.` ` We conclude that none of KDD's affiliates have market power in the destination market.  S- x_The Foreign Carrier Entry Order defines market power as "the ability of the carrier to act  x.anticompetitively against unaffiliated U.S. carriers through the control of bottleneck services or facilities  Sm- x.on the foreign end."[ mn6 {O{$-ԍ xForeign Carrier Entry Order at 116.[ KDD Belgium, KDD France and KDD HK own no facilities and are new entrants  S:- xLin their respective markets.H :6 yO&-ԍxKDD Application at 34.H MobiCom provides only mobile services and has only 1,000 subscribers.= :6 yO-ԍ xId. at 4.= ":X ,l(l(,,r"  xWhile Vostok owns limited facilities, the network cannot be interconnected to the existing public switched  S-network and Vostok has only 1% of the international telephone service market in Russia.5X6 yO-ԍ xId.5  Sg- ` `x7.` ` We find that the present and future public convenience and necessity will be served by  xLthe grant of KDD's application to provide international services between the United States and Belgium,  x[France, Hong Kong, Mongolia and Russia. We therefore grant KDD's application and will treat KDD as  xnondominant in its provision of switched resale services on routes between the United States and Belgium, France, Hong Kong, Mongolia and Russia.  S5-Բx IV. ORDERING CLAUSES ă  1 A. 1. a.(1)(a) i) a) 1 A. 1. a.(1)(a) i) a)  S- ` x8.` ` Accordingly, IT IS ORDERED that application File ITC97096 IS GRANTED and KDD  xAmerica, Inc. is authorized to resell switched services between the United States and Belgium, France, Hong Kong, Mongolia and Russia.  S - ` ox9.` ` It is FURTHER ORDERED that KDD America, Inc., as a nondominant carrier in the  xprovision of resold switched services between the United States and Belgium, France, Hong Kong,  xMongolia and Russia, shall comply with the requirements specified in Sections 43.82, 63.15(b) and 63.21 of the Commission's rules.  S- ` #x10.` ` This Order is issued under Section 0.261 of the Commission's Rules and is effective upon  xadoption. Petitions for reconsideration under Section 1.106 or applications for review under Section 1.115  S-of the Commission's Rules may be filed within 30 days of the date of the public notice of this Order.P6 {O&-ԍ xSee 47 C.F.R. 1.4(b)(2).P x` `  hh@FEDERAL COMMUNICATIONS COMMISSION x` `  hh@Diane J. Cornell x` `  hh@Chief, Telecommunications Division x` `  hh@International Bureau  1 A. 1. a.(1)(a) i) a) 1 A. 1. a.(1)(a) i) a) X` hp x (#%'0*,.8135@8: